Which of the Following Is a True Statement Regarding Elimination

question 151

Multiple Choice

Which of the following is a true statement regarding elimination entries necessary for the preparation of consolidated financial statements?

• A) The entries appear only on the consolidated work sheet.
• B) The entries contain either debits or credits, but not both.
• C) The entries are made only for intercompany receivables, payables, and sales.
• D) The entries are recorded in the consolidated general journal and posted to the consolidated general ledger.

---

Definitions:

Relevant Revenues

Revenues that directly relate to a specific business decision or activity.

Alternatives Being Considered

The different options or strategies under evaluation to address a particular issue or to achieve a specific goal.

Opportunity Cost

The cost of choosing one option over another, representing the value of the foregone alternative.

Five-Day Workweek

The standard work schedule that involves working five days per week, typically Monday through Friday, with two days off.